Developers are welcome to apply for some HCD grant funding from HUD. If a developer is applying for a HUD grant program requiring NEPA, special attention should be paid to avoid Choice Limiting Actions (PDF).

When a developer is the grant applicant, HCD is always the “Responsible Entity” unless the project is sponsored by a qualified local government entity. The developer’s selected environmental consultant must work with the HCD’s Environmental Services Team (EST) in the preparation of the NEPA environmental review documents and notices, including consultation with all relevant regulatory agencies, and obtain HUD’s final approval.

HCD will review draft legal notices prior to publication in a newspaper of general local circulation. With the assistance of the developer, HCD will publish the public notice in the locality’s newspaper for NEPA compliance purposes. HCD will consider any comments received during the mandated public comment period before the submission of the Request for Release of Funds (RROF) to HUD.

All final RROF packages, including the proof of publication, must be approved by HCD. Once approved, HCD (the State’s Certifying Officer) will execute the RROF and then HCD will submit the necessary documents to HUD for final approval. HCD cannot clear the environmental requirements until HCD receives a completed Authority to Use Grant Funds (AUGF) Form from HUD.

If a local government or state agency has already prepared a NEPA environmental review of the same project activities and site for another program, HCD may review and adopt the local or state review, if adequate. Final HUD approval will still be required.  HCD’s EST will ensure proposed projects comply with the provisions of NEPA and the related federal laws.